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Definition

 

Bearish Tri Star formation is very uncommon and forecasts an upcoming inclining trend, signalling a trend reversal. It consists of three Dojis. The middle Doji is a Doji Star.

  • Trend: Reversal
  • Expected trend: Bearish
  • Previous trend: Bullish
  • Reliability: Moderate
  • Type: Bearish
  • Number: 3

Recognition

  • The market is in an upward trend.
  • There are three consecutive Dojis.
  • There is a gap between the first two days.

Interpretation

The formation signals the weakening of the current trend. The uncertainty of the investors last for a couple of days (shown by the narrow trading ranges). If the direction of the trend changes after the Bearish Tri Star, long-term short positions can be opened.

Important factors

The candle on the fourth day can confirm the reversal. The confirmation could come from a black candle with a downward gap or a lower closing price.